Secretary of State seeks restitution, company accused of abusing elderly investor

Secretary of State Jay Ashcroft’s securities division ordered a management company to cease and desist after they were allegedly found to have omitted facts in order to gain the funds of an elderly victim.

The securities division opened the investigation on the WFB Management group back in January after receiving information that officials with the division said indicated an elderly Missouri resident suffering from cognitive decline was being taken advantage of.

The securities division states one man in particular, Michael Stephan, was participating in the alleged exploitation.

Stephan was representing the WFB company and was able to solicit $220,000 in investments from the victim between November 2015 and October 2016, officials with the security division claim.

The victim only received $70,000 in return.

The securities division claimed that more of the investment funds were used for other purposes including surf boards, hotel rooms and payments to the Mirage Hotel and Casino.

“Don’t judge a book by its cover,” Securities Commissioner David M. Minnick said. “A company may have well-presented marketing materials with all of the appearances of success.

The commissioner also ordered respondents to show cause as to why restitution of $150,00, civil penalties of $225,000 and investigation costs should not be imposed.

Ashcroft urges all investors to know the risks and to call the investor protection hotline at (800) 721-7996 if anyone has questions about an investment opportunity.